Crude oil jumped to a near three month high this morning as tensions in Iraq continue to rise and a strike in Venezuela, which has cut off oil exports, moved into its fourth week. OPEC said at the weekend that it will not boost output until the New Year to make up for the loss of oil from Venezuela. Shipments from the world's fifth largest supplier have fallen to just 5pc of normal levels because of the strike organised by opponents of President Hugo Chavez At 0930, crude oil in London hit USD29.00 per barrel, rising by 66c, or 2.3pc. Gold prices also jumped higher, rising USD3.40 to USD343.75 per ounce, having fallen from a six-year high of USD353 over the weekend as profit taking set in
Meanwhile, jitters over Iraq sent the dollar tumbling to a two-and-a-half year low against sterling in thin volumes today The UK pound jumped to USD1.6055 - its highest level since April 2000 - before easing back a little to USD1.6043. The euro was also stronger on the greenback, at USD1.310 Baghdad has said that it is nothing to add to its 12,000-page dossier on its weapons, despite claims by the US and UK government that the report is filled with "lies and omissions". //www.fxcentre.com